HHS Sec. Sebelius New Trick

[nolaagent]

The numbers are mostly fictitious. HHS designed the worksheet the carriers were "asked" to complete. They requested number of applications vs number issued.

Well for my market, at least directionally it seems like it reflects the UW rigidity for the carriers I use. Blue Cross is definitely the easiest carrier to place business. H1 is the strictest. UH1 riders alot to get placement. I guess C1 didn't want to play on Obama's site.

 

[Norwayguy]

The numbers are mostly fictitious. HHS designed the worksheet the carriers were "asked" to complete. They requested number of applications vs number issued.

You mean anything not issued ie clients retracts app equals decline? Also by issued do you mean approved or actually issued and paid for as opposed to agent taking client to another carrier?

 

[somarco]

Blue Cross is definitely the easiest carrier

BCBSGA had that same reputation for years. They even bragged at a meeting about 4 years ago that they made offers on 94% of submitted apps which was unheard of at that time.

They paid the price and have not been able to dig themselves out of that hole in at least 3 years. Not only are they non-competitive but their underwriting here is mediocre at best.

Coventry arrived about 4 years ago and instituted a mass raid on BX which was actually a good thing for Blue. It allowed them to shed a lot of their incompetent dead wood and move them to someone else.

For 90 days or so Coventry was issuing policies to anyone who could fog a mirror and most were at standard rates. Now they decline about half the applications submitted.

Writing anything that moves only works for a while, but eventually that dog won't hunt any more.

You mean anything not issued ie clients retracts app equals decline? Also by issued do you mean approved or actually issued and paid for as opposed to agent taking client to another carrier?

According to the article, HHS looked at gross apps submitted vs how many were actually issued.

Included in declines were apps that were rejected because someone (for example) lived in ME but applied for coverage in GA. Also counted were apps that were issued as other than applied.

If someone applied for plan A but the offer was too high and the carrier countered with plan B at a lower rate that was still considered a decline.

"'Number applications denied' refers to the total count of attempts by applicants to enroll in the product."

Yeah, I know. I am shocked too . . .

As for declines, you need to understand that many apps are not agent directed. Apps submitted directly to the carrier have a high rate of never being completed or if additional data is requested it is never provided.

Too bad. That counts as an app.

And I know you will find this hard to believe, but I have talked with prospects who worked with an agent and all the agent did was send them a link and tell them to apply.

Care to guess how many of those get flushed?

 

[nolaagent]

"BCBSGA had that same reputation for years. They even bragged at a meeting about 4 years ago that they made offers on 94% of submitted apps which was unheard of at that time."

Well I believe your Blues plan is now part of the WellPoint empire so now they need to make money. In my market, the Blues are still non-profit (will tons of reserves) and run the market like the 800lb gorilla they are.

 

[somarco]

Actually the Blues in GA have been for profit for a number of years. Can't recall when Wellpoint bought them, maybe 8 years ago. We have 2 non-profits in the state. KP and a small carrier only in a few counties.